Vol. 475 No. 1
98 Mr. Aylward asked the Minister for Finance the factors in the main which influenced the growth in GDP over the past ten years by 50 per cent in real terms; and the forecast, if any, his Department has prepared on the growth of GDP to the year 2007. [4179/97]
GDP has increased by well over 50 per cent in volume terms over the past ten years (1987 to 1996). The reasons for this performance are complex but include a combination of the following factors:
—prudent management of the economy under successive Governments which had lead to lower interest rates and increased investor and consumer confidence;
—the consensus approach in successive agreements between the social partners which has resulted in moderate nominal pay increases, industrial peace and broad maintenance of competitiveness;
—the strong growth in foreign direct investment which has raised capacity, particularly in exporting industries;
—the contribution of EU Structural and Cohesion Funds which have added to domestic demand but which, more importantly, have improved the infrastructure and productive capacity of the economy; and
—the benefits of very substantial investment in education and training over many years which have raised the productive capacity of our labour force;
—the rapid rate of natural increase in the labour force in recent years reflecting Ireland's young demographic structure — this effect would be enhanced by the increased education level of those joining the labour force.
Forecasts for GDP growth out to 1999 were published with this year's budget, consistent with the move to a multi-annual budgeting approach. These show GDP growth of 6½ per cent in 1997, 5½ per cent in 1998 and 1999, giving a cumulative increase over the three years of 18½ per cent.
Official forecasts for GDP beyond 1999 are not available.
